Legal Question in Real Estate Law in California
We live in San Diego California and my sister in-law wants to purchase equity in our rental condo and live in the condo. We had lived there for 13 years as our primary residence but have rented it out since 2001. We pulled out equity over the years for improvements and to purchase the home we have now lived in since 2001. Our cost basis with depreciation is thus low but not tons of equity so we can't sell as taxes would be triggered and would wipe out most of our equity. Can we put her on title without triggering a taxable event- either raise/change in property tax and/or tax on capital gain of the property? If we pursued a different course, is it legal to come up with a contract "off the books" drawn up by a lawyer to avoid potential taxable events, or at least delay them until an actual sale might take place?
1 Answer from Attorneys
There may be a creative way around it, but you are pushing up against the limits of tax evasion - a line you do NOT want to cross. So you REALLY need guidance of a lawyer in person. You're not going to find a workable solution on the internet.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
